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Sep 30, 2023

Foster Q3 2023 Earnings Report

L.B. Foster's Q3 2023 results reflected profitability improvement and strong cash flow.

Key Takeaways

L.B. Foster's third quarter results showed an 11.8% increase in net sales year-over-year, reaching $145.3 million. Gross profit increased by 22.2% to $28.2 million, with gross margins up by 160 basis points to 19.4%. Net income was $0.5 million, a $2.6 million increase year-over-year, and adjusted EBITDA rose by 14.2% to $10.6 million. Strong cash flow generation reduced net debt by $16.9 million to $68.7 million.

Net sales increased by 11.8% year-over-year to $145.3 million.

Gross profit increased by 22.2% year-over-year to $28.2 million, with gross margins up by 160 basis points to 19.4%.

Net income improved by $2.6 million year-over-year to $0.5 million.

Net debt reduced by $16.9 million during the quarter to $68.7 million.

Total Revenue
$145M
Previous year: $130M
+11.8%
EPS
$0.05
Previous year: -$0.2
-125.0%
Backlog
$243M
Previous year: $273M
-10.8%
Gross Profit
$28.2M
Previous year: $23.1M
+22.2%
Cash and Equivalents
$2.97M
Previous year: $4.94M
-39.9%
Free Cash Flow
$17.4M
Previous year: -$6.97M
-349.2%
Total Assets
$335M
Previous year: $413M
-19.0%

Foster

Foster

Forward Guidance

The Company is updating its 2023 financial guidance to narrow ranges and maintain midpoints for both sales and adjusted EBITDA.

Positive Outlook

  • Maintaining midpoints for sales guidance.
  • Maintaining midpoints for adjusted EBITDA guidance.